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TMI BlogSection 50CX X X X Extracts X X X X X X X X Extracts X X X X ..... Section 50C X X X X Extracts X X X X X X X X Extracts X X X X ..... pplies only if the sale value is below the circle rate as accepted by the Stamp Valuing Authority. Is this correct ? Reply By sanjeev bajaj: The Reply: Yes, if the Income falls under the head Capital Gain. The A O cannot adopt the value more than the value adopted by the stamp valuation authority as per section 50c of the act. You have to submit written reply to the A o for the applicability of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sec. 50C and also show him sdub-section (3) of sec. 50C that even if the valuation as per valuation officer is more than the value adopted by the valuation authority , the AO has to adopt the valuation as per stamp valuation authority. Need not worry. Reply By Deepak Whorra: The Reply: I think that I have not framed my question properly. In our case we had calculted the Capital Gaind at a va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lue which is NOT below the circle rate as assessed by the stamp valuation authority . The AO says that, in our case Section 50C does not apply since we have not compute at a value Below the Circle rate. If we examine 50C, then we see that sub section 1 says that if the consideration is less than the circle rate then the circle rate will be adopted. Sub section 2 states that if the assesse claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s before the AO that the actual value is LOWER than the circle rate then the AO can ask for a valuation report. Sub section 3 states that if the valuation adopted by the Valuation Officer AFTER REFERENCE to him ( the valuation Officer ) UNDER SUB-SECTION 2 is more than the circle rate then the circle rate will be adopted. In our case the computation is NOT BELOW the circle rate. So the AO is sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ying that Section 50C does not apply to us. Is she correct because technically 50 C applies to only those cases where the sale price is below the circle rates.. Will this section still apply to cases where the sale price is more than the circle rate. Reply By sanjeev bajaj: The Reply: It is very interesting case and situation. If you read sub section(1) of Section 50C, it refers about the val ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uation adopted by the stamp authority. This section never refers the word 'Circle Rate'. In your case, The consideration received is the value adopted by the stamp valuation authority. Hence no addition can be made. Further, do the AO has any evidence that the unaccounted consideration is received against such sale. If not the AO cannot make any addition. Section 50C, is the deeming provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i.e if the consideration is below the value adopted than the value adopted can be taken as consideration. However, if the value adopted is mopre than or equal to the value adopted than no addition can be made unless and until some concrete and substantial evidences are available with the AO X X X X Extracts X X X X X X X X Extracts X X X X
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